Section 84 : Compensation in the event of cancellation or termination of contract

Estimated reading: 1 minute 14 views

1) In case a contract is terminated with the mutual consent of both parties or it is no longer necessary to perform the contract under this Act or other prevailing laws, or in case the contract is made void under the law or becomes void or cancelled under this Act after one party has already received some amount in cash or in kind or any other benefit from the. Other party as per the contract, the cash or goods which have to be refunded after adjusting the accounts until the term of the contract expires from the amount paid in cash or in kind shall be refunded. In case any service or benefit other than cash or goods has been provided, the beneficiary must pay a reasonable amount to the other party in consideration thereof.

2) In case it becomes necessary to initiate legal action owing to the non-refundment of the amount paid in cash or kind or the non-payment of the amount under sub-section (1), the concerned party may also realise reasonable expenses incurred for the purpose.

Share this Law

Section 84 : Compensation in the event of cancellation or termination of contract

Or copy link

Discover Nepal's laws effortlessly. Our user-friendly platform simplifies legal understanding and accessibility, serving individuals throughout the country.